How The Stock Market (And Insurance Market Trends) Affect Your Home Insurance

Posted by on Oct 30, 2015 in Uncategorized

As the stock market rises and falls, you may notice your home insurance rates wildly varying. That’s because there is a strong connection between the stock market and the home insurance market. Understanding how they are connected can help you keep track of your insurance expenses. Thankfully, recent news seems to suggest that trends are looking up. Recent Stock Trends After a month or two of falling stock trends, a recent surge of more than 10% seems to promise the potential of a bullish market. Generally, recoveries of this type create an investor surge that helps to positively rally the market. In spite of this rally, positive stock market sentiment is still relatively low. Sentiment indicates how investors are regarding the market and it rests at 37.5%. While this is a positive rate, it’s still about half what you see in a strong rally. In spite of this low sentiment, positive market gains are still present and are projected to move upward. Recent Outlook On The Home Insurance Market As the stock market rebounds, the outlook for the home insurance market continues to improve. A recent report at InsuranceJournal.com indicates that the home insurance market has vastly improved over the last several months, including an average 8.6 percent increase in equity across the country. This improvement has been generated by a rate increase of about 4.0 percent across the nation. Another improvement leading to these increases is more precise risk-adjustment pricing, which lets insurers create more finely tuned insurance plans. How This Affects You Both of these trends bode well for your home insurance rates and your level of coverage. Generally speaking, insurance rates are inversely proportional to the direction of the stock market. This means that if stock prices go up, insurance rates go down. That’s because insurance companies invest much of their money in stocks and bonds: when the rates go up, they can afford to offer their customers discounted rates. An improved home insurance market can also result in stronger home insurance coverage. Though you may pay slightly higher rates, a stronger insurance market generates a decreased chance of reinsurance. Reinsurance is the process of transferring certain portions of your insurance coverage to other parties. Insurance companies do this to decrease the risk of paying large payouts. A strong market reduces the need for insurance companies to divide your coverage in this way, which streamlines and simplifies your coverage. Now that you have a better understanding of these two forces, you can better plan your home insurance payments. It may also help you choose a stronger home insurance company, as specific companies will fare better (or worse) in the highly variable stock market. To learn more about home insurance, contact a company like Trent Insurance Group...

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How To Keep Your Home Insurance Premium Low And Affordable

Posted by on Oct 20, 2015 in Uncategorized

When trimming your household’s budget, one of the best places to start is with your insurance premiums. You shouldn’t have to watch your premiums increase every single year, because there are things you can do about it. Here are 4 ways to get the best deal on your homeowners insurance. Bundle All Your Insurance Products Having multiple insurance policies with one company is a way to lower your premiums, because you typically get a discount for doing so. The individual policies may be slightly more expensive, but the discount could be what makes them cheaper overall. While automotive and homeowners insurance are frequently combined for a discount, other insurance policies can increase your savings as well. For example, if you are considering getting a life insurance police, check with your agent to see if you will see any savings if you get one through the same company as your homeowners insurance. Increase Your Deductible When you file a claim with your insurance company, you must first pay your deductible. This can be anywhere from $500 to 1% of the value of your home, depending on what your insurance company offers. The less you pay when filing a claim, the higher your premiums are each year. Consider upping the deductible, and if you go claim free for several years, you will come out ahead in savings even if you do need to make a claim with the higher deductible. The key to making this change is having the money on hand for the increased deductible. If you have a 1% deductible on a $300,000 home, make sure you have that $3,000 deductible stashed away in an emergency fund for if you need it one day. Evaluate Your Coverage Your initial home insurance policy was based on the items you had in your home at the time you bought your policy. Things most likely have changed since then, and updating the status of your home can lower your risk and how much you pay. For example, a dog can actually increase your premiums because of the risk they pose to others with a potential dog bite. If you no longer have a dog, update your police to receive a slight discount. Your new windows may be more resistant to hurricanes and strong winds, which make your home less likely to be damaged and eligible for a cheaper premium. Maintain Good Credit                                                                                         Credit history actually plays a big role in how much you pay for insurance. A recent study has shown that homeowners with poor credit pay 91% more than homeowners with great credit. Having poor credit shows that you are unable to pay your bills and are a greater risk to insurance companies. Following these tips are a sure way to see savings with lower insurance premiums. For more information, talk to a professional like Gateway...

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